Oklahoma City-LSB Industries Inc. reported a drop in net income, to $1.7 million ($.07 per diluted share) on sales of $130.4 million for the first quarter ending March 31, 2010, compared to the year-ago $11.7 million ($.51 per diluted share) on sales of $150.2 million. Both company units, Climate Control and Chemicals, saw decreased operating income. Chemical income was $1.9 million on sales of $74.8 million, compared to the year-ago $12.6 million and $74.5 million. In terms of tons shipped, sales of industrial chemical products increased, while sales of agricultural and mining products were lower. Ag ammonium nitrate sales were significantly lower due to a late start in the spring fertilizer season. The company reported that while UAN production began at its Pryor, Okla., nitrogen plant during the quarter, mechanical issues have delayed its ability to maintain a meaningful, sustained rate. Ammonia production began in January and continues to hit the market. The company incurred $6 million of expenses during the quarter, primarily consisting of Pryor start-up costs. Despite the late spring, the company said it saw strong fertilizer demand in April, as well as better demand for industrial acid and mining products. Climate Control income was $5.5 million on sales of $53.7 million, down from the year-ago $9 million and $72 million. The unit suffered from weakness in commercial and institutional construction markets.
Transparency Across the Fertilizer Value-Chain